x
52767 12/4/2012 | 10:00:39 PM
re: Ellacoya Cuts Staff -- Again For those bitter ex employees who post here hacking a company to bits, whom do you think you are hurting? The execs are all wealthy, you are only hurting your friends with these slanderous, often unfounded remarks.
2ToneTruck 12/4/2012 | 10:18:37 PM
re: Ellacoya Cuts Staff -- Again Puh-leaze!

A good idea? Yah, so is knocking your head against the wall until you believe the drivel they passed around.

As far as the box being unstable, I doubt that very much. They don't have a box to be unstable with.

Last I heard they we "re-focusing" for a "strong concerted push" overseas. Good luck.
I'mRael 12/4/2012 | 10:18:51 PM
re: Ellacoya Cuts Staff -- Again
Get me out of this cage...
Route_495 12/4/2012 | 10:18:51 PM
re: Ellacoya Cuts Staff -- Again
Agreed, it was a good idea, as far as ideas go. I heard they really messed up on QA and the box is very unstable.
Oakster 12/4/2012 | 10:41:30 PM
re: Ellacoya Cuts Staff -- Again go_to_the_light wrote...

Saw this on another thread!

http://www.lightreading.com/bo...

Great line - what's it from?


----------------
From Genesis' epic 1974 album, The Lamb Lies Down on Broadway.
go_to_the_light 12/4/2012 | 10:41:34 PM
re: Ellacoya Cuts Staff -- Again Saw this on another thread!

http://www.lightreading.com/bo...

Great line - what's it from?
Oakster 12/4/2012 | 10:41:35 PM
re: Ellacoya Cuts Staff -- Again Author: I'mRael Number: 27
<b.subject:< b=""> Re: Right-Sizing Date: 3/26/2002 10:36:28 PM

I'mRael wrote...

The hall runs like clockwork
Their hands mark out the time; ...


Another one comes to mind when writing about Ellacoya (or any of a number of others in the optical networking field):

Hovering like a fly,
Waiting for the windshield on the freeway.


Keep 'em coming, Imperial Aerosol Kid.</b.subject:<>
moreforyou 12/4/2012 | 10:41:36 PM
re: Ellacoya Cuts Staff -- Again
>>"c) there is no new product, just one they >>couldn't ever get to market in time"

>>"The interesting thing is they hired all the >>good old boys from ctron and a bunch of monkeys >>from lucent mixed em all together, in the >>margarita blender, and spent all the money like >>a bunch of drunken sailors."


They could'nt get it to market in time because of they used unknown vendor to deliver them crucial software.

From what I hear, they wanted cheap third party software. They got it and paid for it , big time.

Some vendor called "futuresoft" gave them software for routing, tunneling, nat/pat, etc... that didn't work, wasn't scalable, wasn't maintainable.

Otherwise they have excellent product, that can kick any competitors posterior.




realdeal 12/4/2012 | 10:43:30 PM
re: Ellacoya Cuts Staff -- Again Wow- sad to see some have yet to kick the koolaid habit.
I'mRael 12/4/2012 | 10:43:35 PM
re: Ellacoya Cuts Staff -- Again
The hall runs like clockwork
Their hands mark out the time;
Empty in their fullness
Like a frozen pantomime.
Everyone's a sales representative
Wearing slogans in their shrine.
Dishing out failsafe superlative,
Brother John is No. 9.

it's the Grand Parade of Lifeless Packaging
- All ready to use
it's the Grand Parade of Lifeless Packaging
- I just need a fuse.

photon_mon 12/4/2012 | 10:43:37 PM
re: Ellacoya Cuts Staff -- Again skeptikal, I actually do agree with most of your
observations. Bad choices early on due to lack
of proven experience usually DO tend to spawn
over time. IMHO, Sege (despite my personal "mild
dislike") is a promising CEO and would have made
a much greater impact had he been one of the
first key hires. As you well indicated, the die
was already cast by the time of his arrival.

Hindsight is always 20/20 though. In retrospect
the sales team could have started out much smaller
and flatter. However, I don't think their SE
compensation was out-of-line with the rest of
the industry for that point in time. That was
in the range for experienced talent - regardless
of startup - as dictated by supply and demand.

As far as building renovation expenses go, the
figure you stated does seem high, based on
physical appearances after completion. I don't
know how much of it was consumed by required
mechanical, electrical and safety requirements,
so that could explain alot. In fairness the
improvements (from what I could see at least) did
not seem gratuitous or unnecessary.

For a multitude of reasons - the majority of
which few will ever know - current product
offerings proved to not be an ideal match for the
market (if one does in fact today exist for this
concept).

To get on my soapbox for a sec, it truly will
be refreshing to see a market once again for the
majority of what out industry has to offer. Let
us not forget that financially sound, internally
stable, growth oriented prospects ARE the market.
Even before some of the key accounts that
everyone targeted went south (or under), there
was turmoil within them. Traction was frequently
lost overnight in the aftermath of yet another
change of strategic direction or management team.
Seemingly the only apparent bold and decisive
decision-making involved where folks should go
for lunch. But of course it is politically
incorrect to actually mention this aspect
(especially unforgivable in a good economy).

Enough beating this dead horse (actually,
nitpicking is even worse).

skeptikal 12/4/2012 | 10:43:41 PM
re: Ellacoya Cuts Staff -- Again Answers to the questions:

a) there was no demand to start with
b) there were no customers for the flagship product, it never worked!
c) there is no new product, just one they couldn't ever get to market in time
d) the SGS6000 was a GigE box, a toy
e) "Daddy, what's a CLEC?"
f) Ellacoya is like a frog in a French Resturant - the blue plate special.

Feel very sorry for the folks that are left. Sege - 3 strikes pal.
skeptikal 12/4/2012 | 10:43:41 PM
re: Ellacoya Cuts Staff -- Again "Personally I thought Ellacoya was fairly
conservative" - you gotta be kidding Photo-mon. They spend money like drunken sailors is right!
1) They staffed a 9 person sales team of veteran sales guys & SEs @ $100K base + 50K draw; 2 regional Sales VP and EVP that had no clue what he was doing - AND HAD NO PRODUCT TO SELL.
2) Refurbished their building to the tune of $6M (why?)
3) Hired friends and neighbors and brothers and sisters - huh?

They did the best selling job to the $$ guys - 'Stop, you had us at hello' - GeezeePeezee, those guys would have given money to Sadam Hussain!
skeptikal 12/4/2012 | 10:43:41 PM
re: Ellacoya Cuts Staff -- Again The 'Corporate Chef' was a guy that flipped burgers, don't believe EVERYTHING you read, just like on LightReading...
skeptikal 12/4/2012 | 10:43:41 PM
re: Ellacoya Cuts Staff -- Again Photon-Mon -

The die was cast long before Sege showed up. The truth is they had a bunch of amatuers playing in the pro-space - enterprise mentality doesn't scale into the carrier space. They were chasing everything that moved, thanks to a former EVP of sales, then brought in an Ogre and his Idiot to run sales for a while, even the Idiot got smart and left. The big switch don't work, ask the obvious players. They've blown more opportunities thru sheer incompetence than I've seen in 20+ years. You've got to listen to your customers and react - strategy is an evolving process, not cast in stone and immovable, unless your an amatuer, like Kurt Dobbins...
Iagojrh 12/4/2012 | 10:43:50 PM
re: Ellacoya Cuts Staff -- Again I believe "Corporate Chefs" is the name of the catering company that serves a lot of local office buildings in the 495 area.
But cheers to Matt B and company for spinning that. Good stuff.
bluey 12/4/2012 | 10:43:57 PM
re: Ellacoya Cuts Staff -- Again From that eweek link : "There is a lot expected of us in the workplace, and we have very specific goals," Work says. "But people here do have families and they do have lives."


There's the problem right there: They allowed their employees to have lives! Don't they realize that in high tech you're supposed to work 7 days a week, 12 hrs a day? C'mon guys, it's the New Economy!!
photon_mon 12/4/2012 | 10:44:08 PM
re: Ellacoya Cuts Staff -- Again Thanks, lu-alum. Yes, I didn't doubt for a minute
that you were just passing on what you read. Now
I realize the context from where the "chef"
originated. Just chalk it up to hype. The cafe
was a mom-and-pop operation with good, basic
food --- but filtered through marketing it became
an east coast Spago's (sp?).

Personally I thought Ellacoya was fairly
conservative (not cheap, but reasonable) with
their capital. I won't bore you with examples.
It was a great place to work, at least during
the "salad days" (oh, that reminds me, they did
also have a small salad bar ;)

By the way, as lately seems to be the case with
most startups that find themselves into late VC
rounds with little traction (in other words ---
most startups!), layoffs appear to be mandated
by the VCs as a gating factor for more money.

It's a cruel world right now. But perhaps here
in my own small way I have helped to make it
less so through greater understanding.
lu-alum 12/4/2012 | 10:44:10 PM
re: Ellacoya Cuts Staff -- Again photon_mon, good post. To clarify the corporate chef remark, Interactive week did a story about a year ago on the top 10 places to work and Ellacoya was mentioned.
Believe it or not I found the link...
http://www.eweek.com/article/0...
photon_mon 12/4/2012 | 10:44:11 PM
re: Ellacoya Cuts Staff -- Again I'm a loyal reader, and feel like a know alot of
you folks, though this is my first post (break out
the bubbly!). Next time: no training wheels!

I have to admit that one thing I enjoy most about
Light Reading is the inevitable and ubiquitous
"no-holds-barred / devil's advocate" critiques
(heck, even Harvey's!). Where else can I find all
of the dirt that companies strive to keep under
the rug? Fact or fiction, I never fail to be
entertained! Plus I am always enlightened in some
way.

Of course it takes time and many different perspectives to refine any given picture into one
that likely approaches reality.

So in the case of Ellacoya, I can attest that -
based on my knowledge of the company and its history - lu-alum was close to dead-on in terms
of a FAIR analysis and accuracy in detail.

As for a disclaimer, no, I do not work for Ellacoya, and also do not have a vested interest
in Ellacoya in any way. I did work there for
awhile [pawn status], but do not have ties to
any who are left.

But c'mon, let's be fair. There's not a whole
lot of companies out there who by nature elude
our criticism these days! Or deserve to.

The past couple of years have made idiots out
of many (most, in fact) in our industry -
deservedly so in numerous cases. Ellacoya is no
different. IMHO, their concept will be viable some
day soon. Does Ellacoya have the best possible
implementation of that concept? Will Ellacoya be around to see their version of the vision become widely embraced? I think most of us would
agree on the answers to those questions ;) .

Back before the collapse of the markets that
lu-alum mentioned (along with the ever elusive
BLEC space), value-added incremental revenue
plays DID seem to many to be the next big thing
(get the subscriber to spend an extra $5 here and
there - above and beyond his/her broadband access
fee). Okay, okay, I'll stop reading to you from
my Ellacoya press kit! But hopefully I made my
point. Who knew that so many would revert
overnight to the land of dial-up, sub-rate and
n * T1?

Now on to one of my favorite recurring topics
regardless of company: perks! "Personal chefs"
and a "company store" were mentioned in
Ellacoya's case. I particularly got a good
chuckle out of the personal chef assertion. If
their humble cafeteria can be considered as such,
than I can also brag that my high school had its
own Wolfgang Puck catering to our culinary
delights! Who WAS that maestro in the hairnet?
Can I have one on my own Learjet?

Same thing with their company "store": boxes of
trinkets, t-shirts and hats in a storage closet;
typically - if not in all cases - given rather
than sold.

I could go on, but I don't want to get voted off
of my favorite island.



arbors 12/4/2012 | 10:44:13 PM
re: Ellacoya Cuts Staff -- Again "Any truth to the rumor that Ellacoya had an internal store to sell Ellacoya merchandise? If so, sounds like it may have generated more revenue for the company than the product ever did or ever will.

Maybe we should drop the "O" in the name:

Ella C Ya!"

All the start-ups have an internal store that sells company stocks. Ellacoya is no exception. Does the store have a "no return" policy for the laid-offs?
realdeal 12/4/2012 | 10:44:14 PM
re: Ellacoya Cuts Staff -- Again Any truth to the rumor that Ellacoya had an internal store to sell Ellacoya merchandise? If so, sounds like it may have generated more revenue for the company than the product ever did or ever will.

Maybe we should drop the "O" in the name:

Ella C Ya!
metro_ether_man 12/4/2012 | 10:44:15 PM
re: Ellacoya Cuts Staff -- Again What is it exactly, has this man
delivered to the organization and
for company, besides a major drain
on money ?
lu-alum 12/4/2012 | 10:44:16 PM
re: Ellacoya Cuts Staff -- Again "...and spent all the money like a bunch of drunken sailors."

I can atest to that. I still have a clipping of an Interactive Week article that talks about Ellacoya's corporate chef!

When I first read that, I decided that they would get whatever they deserve. Looks like they did.

joker_1234 12/4/2012 | 10:44:16 PM
re: Ellacoya Cuts Staff -- Again Who said the product was interesting, this was based on a product design that started as an LDAP enabled switch in the enterprise space (failed in that space just ask the boys from ctron) Then they decided to take this technology and repackage into a Carrier class product. Put together a few blades that support ethernet, gig, ATM, and some routing support. The interesting thing is they hired all the good old boys from ctron and a bunch of monkeys from lucent mixed em all together, in the margarita blender, and spent all the money like a bunch of drunken sailors.

So now poor old Ron after being sold a bill of goods and lot of bull, is stuck holding the bag.. And of course the bag is almost empty.

Bronxbomber 12/4/2012 | 10:44:18 PM
re: Ellacoya Cuts Staff -- Again Spoke to several ex-Ellcoya people and their new strategy is to "give away" the hardware and make their money on software provisioning. They actually believe that they can compete with Broadjump. It's too late!!!!
lu-alum 12/4/2012 | 10:44:18 PM
re: Ellacoya Cuts Staff -- Again If you look at their product, they were a very good idea at the time. Their products would have enabled non-vertically integrated DLECs to establish an instant portal presence and service creation capability. So in 1999, this would have been a very attractive product for people like Covad, Northpoint, Rhythms, DSL.net you name it. Trouble is, well you all know what they trouble is, there aren't any non-vertically integrated providers left. The big guys (RBOCs) are prevented from offering the kind of services that ellacoya enables so they won't buy. So in my opinion it was a good idea for the 1999 market, but shame on them for not seeing the writing on the wall. They should have restarted a long time ago instead of trying to milk some sort of exit with the existing product set. I think that the main reason they are as bad off as they are is because they have been in denial for the last two years. Now they will cease to exist or be sold for a pittance for their intellectual property. That makes me think that the layoffs are not over yet.
cyber_techy 12/4/2012 | 10:44:21 PM
re: Ellacoya Cuts Staff -- Again >Ron, Ron, Ron.
>Not available for comment.
>What a surprise.
>Time to turn in your key to the company.

Whose smart idea was it to build a product for gaming enthusiasts?

Sellacoya was originally formed to have a working product out the door that could send and receive packets and hope some Roths or McGinns would take the bait and buy the company.

rrocket 12/4/2012 | 10:44:26 PM
re: Ellacoya Cuts Staff -- Again This is the company where the VP of sales doesn't return calls from his prospects - he's real keen ain't he?
lo_mein_noodles 12/4/2012 | 10:44:28 PM
re: Ellacoya Cuts Staff -- Again Man ohhh Man, 2 years and $111 million later and all the execs can say is "we hope to see some revenue from BETA customers real soon!", and it seems the marketing dept. still has no clue what engineering is building?
Dang, this Dog can't hunt, bark or s_it!
Shoot the damn thing and get it over.
yomama 12/4/2012 | 10:44:33 PM
re: Ellacoya Cuts Staff -- Again The Dr says you've got maybe 6-9 months to live. Q:How many serious customers are going to buy hardware from this outfit?
A: Not many


Goodnight!
Oakster 12/4/2012 | 10:44:38 PM
re: Ellacoya Cuts Staff -- Again Author: I'mRael Number: 2
Subject: Re: Right-Sizing Date: 3/22/2002 10:26:34 PM

---
I'mRael?

Rael, Imperial Aerosol Kid?
realdeal 12/4/2012 | 10:44:40 PM
re: Ellacoya Cuts Staff -- Again They are a lot like a wounded animal, limping along the side of the highway wondering if they should head into the woods and die slowly or throw themselves into the high speed lane and put an end to the suffering.
LiteReeder 12/4/2012 | 10:44:43 PM
re: Ellacoya Cuts Staff -- Again Ron, Ron, Ron.

Not available for comment.

What a surprise.

Time to turn in your key to the company.
I'mRael 12/4/2012 | 10:44:44 PM
re: Ellacoya Cuts Staff -- Again

Nah nah nah nah...
nah nah nah nah...
HEY HEYYYYYYYYYYYYYY...


GOODBYE!

Gladtobegone 12/4/2012 | 10:44:46 PM
re: Ellacoya Cuts Staff -- Again I guess that the company has finally been trimmed down to just the people that have caused it fail in the first place.

Ellacoya is an Indian word meaning "Who cares?" Someone should shoot this thing in the head before any more money gets wasted.
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